M&S staff reject Labour Court recommendation

Workers at Marks & Spencer have overwhelmingly rejected a Labour Court recommendation, once again raising the potential for strikes at the retailer.

Members of the Mandate and Siptu trade unions voted 84% to 16% to reject the recommendation which, Mandate said, largely backed plans by M&S management for cost-cutting measures “which would seriously deteriorate the living standards for workers at the company”.

It said that, under the company’s plans, some workers would be expected to take a cut of more than 20% in their terms and conditions of employment.

“Last year, Marks & Spencer management closed the workers’ defined benefit pension scheme without agreement — informing the workers that their retirement fund is a ‘discretionary benefit’,” said a spokesperson for Mandate.

“Unlike many other defined benefit schemes, the Marks & Spencer scheme was a performing scheme and was in surplus to the tune of approximately €17m.”

It said the company had also put forward proposals for:

- A reduction in the number of section managers;

- A reduction in the Sunday and public holiday pay premium;

- The elimination of the Christmas bonus.

Mandate assistant general secretary Gerry Light said: “Our members don’t believe the proposed cuts are reasonable having regard to all of the circumstances. As far as they are concerned, the company has failed to provide sufficient evidence to justify them and this is why our members have made such a strong statement to the company and the Labour Court.”

The union said it has now written to the company to invite them back into negotiations.

Marks & Spencer employs approximately 2,300 workers in 17 stores nationally.

Meanwhile, more than 14,000 workers in 147 Tesco stores have voted to accept a 2% pay increase, estimated to be worth up to €700 a year to each worker.

Mandate also announced yesterday that it has secured an enhanced redundancy package for any staff who will be affected by any restructuring of the Arcadia Group — which includes Burtons, Dorothy Perkins, Evans, Miss Selfridge, Topman, Topshop, and Wallis.

As a result, staff will receive a redundancy package of four weeks’ pay per year of service in the event that any of the stores need to be restructured.